BP Sells Another 5% Browse Stake to Osaka Gas as Asset Sell-Down Continues
The Japanese utility will secure around 550,000 tonnes per year of LNG from the planned $35 billion Western Australian project.
BP has agreed to sell a further 5% stake in Australia's Browse LNG project to Osaka Gas, continuing the UK supermajor's reduction of its 44% holding in the $35 billion development, according to a statement published Monday (2026-09-21).5
Osaka Gas will receive approximately 550,000 tonnes per year of LNG under the arrangement, along with associated LPG and domestic gas produced from Browse, the Japanese utility said. For Osaka Gas, that volume secures direct supply procurement from a new long-life project before development sanction is reached — a procurement posture Japanese utilities have pursued consistently as domestic generation needs grow.5
Browse, operated by Woodside Energy, is designed to produce 11.4 million tonnes per annum of LNG, LPG and domestic gas at peak, plus condensate at a rate of around 50,000 barrels per day. Feed gas would flow to Woodside's existing Karratha Gas Plant at North West Shelf, sidestepping the need for a standalone export terminal and anchoring the project's economics in existing infrastructure.3
The Osaka Gas deal is BP's second Browse stake divestment in three months. On Monday (2026-06-01), BP sold 5% to South Korea's GS Energy, also carved from that same 44% position. "The dilution reflects BP's disciplined approach to portfolio management by bringing in a committed partner," BP said at the time. The same rationale now covers a second transaction, leaving BP with a 34% stake once both deals close.3
Western Australia granted Browse State Significant Project status on Monday (2026-07-27), the highest level of planning prioritization available under state rules, Woodside said at the time. That designation accelerates permitting coordination, though Browse has yet to reach a final investment decision.4
JKM, the Asian LNG spot benchmark, was $27.51 per MMBtu on Monday (2026-09-21). Long-term offtake agreements like the one Osaka Gas is securing are typically priced at a discount to prevailing spot, offering the buyer protection against downside price moves but capping gains if the benchmark rallies sharply. Japanese utilities have historically accepted that tradeoff for supply security.5
Australia's LNG expansion ambitions sit behind both transactions. Some forecasters estimate Australian production could reach up to 100 million metric tonnes per annum over the next decade, surpassing Qatar, according to King & Spalding analysis. Browse, at 11.4 mmtpa planned capacity, would be a meaningful contributor to that total.1
Up to 83% of Australia's current LNG output is already pre-allocated through long-term supply contracts, predominantly bound for Japan, China, South Korea and Taiwan, Santos data presented at an investor briefing on Tuesday (2026-05-26) showed. New capacity from Browse, if sanctioned, adds volume rather than reshaping that allocation structure.2
The financial case for pushing Browse to FID has a historical reference point. After Russia's expanded invasion of Ukraine drove gas prices higher, Australian oil and gas sector profits climbed from AU$13 billion in FY2020-21 to AU$62 billion in FY2022-23, according to the Institute for Energy Economics and Financial Analysis. Browse's consortium — now including BP, Woodside, GS Energy and Osaka Gas — would be exposed to a similar move if LNG markets tighten again.2
The pace at which BP is reducing its Browse stake is now visible. Two sales, totaling 10%, within the same development cycle is a clear direction. What remains unspecified is how low BP intends to go before FID, and whether further sell-downs are planned before or after the project commits to construction.3,5